MSE News: Barclays to buy ING Direct UK: How it affects you

gris

In the same position as CraigEmma, wondering whether to complete on the 3.14% 5 year fix. I would assume they wouldn't touch the rate over the 5 years. Now you have me worried that they will change the overpayment conditions and if that's the case, I will dump this application and go elsewhere.

gris

CRAIGEMMA wrote: »

I do know barclays stopped overpayments on standard life products when transferred over... Which is a feature i want on fixed rate unless they allow me to change the term (currently ing are allowing me on 2y longer than I want but I'm going to overpay) i will report back what legal say

Craig, what did your legal team say about this? Can they change overpayment conditions on a fixed rate mortgage?

CRAIGEMMA

I am due an answer back from legal on this on Friday (tomorrow) will keep you posted. They will know as we merged (swallowed up) another financial firm a few years ago and took their mortgage book on... I will report back ASAP. However I DO need to overpay on my mortgage as well as I wanted a shorter term than requested however after reading about the full transfer of standard life mortgages to barclays im comfortable in my decision to proceed. barclays DID change the T&C but kept the rates - they moved them to woolwich products eventually (like they will us) and stopped them from being able to overpay then drawback the funds when required (like an offset but not - as in a fixed rate, overpay to it but then decide you want it back without forms etc again - barclays stopped them from doing this as their products didnt have this function. On speaking to a contact in Woolwich he tonight confirmed that ALL woolwich/barclays mortgages on fixed rates have overpayments of up to 10% PA and to him he could see the difference between a capital repayment and an overpayment (like myself at the start) and his opinion was that 1. the fixed rate will stay as it has to. 2. if woolwich fixed rates allow overpayment of up to 10% p.a and the ING one allows "capital repayments" of up to 10% p.a then the ONLY thing he thought that could change would be like the year... if ING work from Date of completion to following year as your year of overpayment and Barclays do it J-D as example that could change but that would be it. Worst case folks... as its only 3.14%.. we could just bang it away into cash isa somewhere at slightly lower but with compound interest over the few years we will have this issue IF it does happen then lump in at end of the 5 years it wont affect it that much (ive done my sums on own internal overpayment vs savings calculator system we have). Will feed back from Legal either tomorrow or over weekend folks.

CRAIGEMMA

The answer is "they could if they wanted but its too much of a reputational risk and overpaying helps arrears and brings much needed capital into the bank, stopping drawbacks like happened with SL takeover is opposite, it's giving more money out- so nothing to worry about it helps buffer arrears", could they stop it...if they wanted, will they in their opinion "not a chance"

gris

Thanks Craig for reporting back, that's reassuring. I think I'll go through with the remortgage too.

andrewtracey

I was an ING customer and like many am now a Barclays customer. I don't want to be a Barclays mortgage customer. I am tied into a fixed deal with a redemption charge. should I have to pay this as I never signed up to be a Barclays customer? I just want to move my mortgage away from Barclays but will have to pay over £4000 for the pleasure. Legally can I get out of this ?